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Korea's Credit Rating Remains Unchanged Despite Military Tension

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공표년도

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2010-06-01

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It looks like the escalating tension between the two Koreas has little impact on the South Korean economy.
The international credit rating agencies projected the South Korean rating to remain unchanged‚ saying that Korea's current grade already implies the North Korean risk.
Seoul's finance ministry officials say that high-ranking officials from the credit rating firms in New York showed a favorable view on the Korean economy‚ emphasizing particularly on the country's fundamental economic capabilities.
In fact‚ Moody's Investors Service announced on Monday that it will keep Korea's A1 rating‚ saying that the country's geopolitical defense and economic fundamentals are strong enough to withstand the recent military tension.
Officials in New York also added that the European debt crisis will have limited influence on the Korean economy.
Meanwhile‚ Korea showed the highest economic growth rate for the 1st quarter of this year among the OECD member nations‚ posting a 1.8 increase in gross domestic product from last quarter.
The capital adequacy ratio of Korean banks rose for six consecutive quarters‚ peaking in March.
According to Korea's Financial Supervisory Service‚ the ratio of 18 banks' capital to risk-weighted assets reached 14.6-6 percent‚ which is a 0.3 increase since December‚ 2009.
Han Da-eun‚ Arirang News.
Reporter : daeun@arirangtv.co.kr

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